This report is also available in a downloadable PDF version via this link: MENA Startup Ecosystem News – Apr 2022
TOP NEWS
MENA startups raise $864M in Q1 2022: According to Magnitt’s Q1 2022 Venture Investment Report, $864M was raised in venture funding in MENA over the first quarter of the year; signifying a strong start for the ecosystem.
- This surpasses the previous quarter by 33.3%, and that of Q1 2021 by 161%. Startups in the UAE accounted for 27.3% of all deals and 34.4% of total funding raised.
- Sectors Fintech and Transportation & Logistics constitute more than half (53%) of total funds raised. One Mega Deal ($100M+) was closed in the quarter by cryptocurrency Rain.
- MENA-based investors outnumbered global backers for deals lea than $5M, while international investors kept to larger sized rounds ($5M+).
INVESTMENTS
| STARTUP | SECTOR / INDUSTRY | LOCATION | AMOUNT & ROUND | INVESTORS |
| Foodics | F&B | KSA | $170M, Series C | Led by Prosus, Sanabil Investments, from Sequoia Capital India, STV, Endeavor Catalyst |
| Millenial Brands | Beauty & Wellness | UAE | $35M, undisclosed round | Global Emerging Markets Group (USA) |
| Pylon | Energy / Environment | Egypt | $19M, Seed | Led by Endure Capital, from Cathexis Ventures, Khawarizmi Ventures, Loftyinc Ventures, et al |
| Red Sea Farms | Agriculture | KSA | $18.5M, undisclosed round | Led by Wa’ed (Saudi Aramco), The Savola Group, from KAUST Innovation Fund, OlsonUbben LLC |
| Zenda | Finance | UAE | $9.4M, Seed | STV, COTU Ventures, Global Founders Capital, VentureSouq |
| Raha | Consumer services | Kuwait | $6.7M, Seed | Undisclosed |
| The Food Lab | F&B | Egypt | $4.5M, Pre-Seed | Led by Nuwa Capital, Shorooq Partners, 4DX Ventures, et al |
| Queros | Education | UAE | $3M, Pre-Seed | COTU Ventures, Collee Capital, from Globivest, Plutus21 Capital, Dubai Angel Investors, et al |
| Right Farm | Agriculture | UAE | $2.8M, Seed | Led by DisruptAD, Enhance Ventures |
| Kaya | Beauty & Wellness | KSA | $2.6M, Seed | Revival Lab, Al-Dowayan Investment Company, Al-Sulaimaniya Investment Group. |
| O7 Therapy | Health | Egypt | $2.1M, Seed | Led by Hikma Ventures, C-Ventures, Lotus Ventures |
| Wisewell | Consumer services | UAE | $2M, Pre-Seed | Led by BECO |
| Repzo | Enterprise SaaS | Jordan | $1.5M, Bridge | Led by Arab Palestinian Investment Company (APIC), Jabbar Internet Group, Ahli Fintech, et al |
| Lawazem | Ecommerce | KSA | $1.3M, Seed | Led by Merak Capital, from Merced (KSA) |
| Sprints | Education | Egypt | $1.2M, Seed | Led by Alexandria Angels Network, from MED Angels, AUC Angels, Cubit Ventures, et al |
| Joi Gifts | Consumer services | UAE | $1M, Pre-Series B | Panthera Capital |
| Spoilz Games | Gaming | KSA | $692K, Pre-Seed | Angels |
| Nessiam | Fashion | Morcco | $305K, undisclosed round | CDG Invest |
| WafR | Finance | Morocco | $278K, undisclosed round | Led by UM6P Ventures, Plug and Play, from angels |
| Fine Diner | F&B | UAE | $150K, Seed | Undisclosed |
| Lune | Finance | UAE | $68K, undisclosed round | Sandooq Al Watan |
| Gathern | Real estate | KSA | Undisclosed amount, Pre-Series B | Led by Shurafa Real Estate Development, from STV, Al Majdia Residence, et al |
| PayMint | Finance | Egypt | Undisclosed amount, Seed | AUR Fintech |
| Shift EV | Transportation & mobility | Egypt | Undisclosed amount, Series A | Union Square Ventures, Algebra Ventures, and Wamda, otf Jasoor Ventures |
| Rology | Health | Egypt | Undisclosed amount, Series A | Egypt Ventures, Sequence Ventures, Waseel, Tawaref, and Viktoria Ventures. |
| QiDZ | Entertainment / Education | Egypt | Undisclosed | The Cairo Angels Syndicate Fund |
| WakeCap | Construction | KSA | Undisclosed | Wa’ed (Saudi Aramco) |
STARTUPS
- Swvl acquires Transit Firm Volt Lines: The Dubai-based ride sharing startup acquired Turkish transportation-as-a-service operator Volt Lines valued at around $40M. This 4th acquisition by Swvl gives the startup access to Volt Lines’ tech and over 110 corporate clients
- KSA-based GLT Express acquires Egypt’s Gallop Express: KSA-based Logistics company GLT Express acquired the Egyptian logistics company Gallop Express, as part of the former’s expansion beyond the GCC countries and into further countries in the MENA region.
- Egypt’s M&A Firm PIE acquires online marketplace, Exits: Mergers and Acquisitions Advisory Firm PIE has acquired Exits, a regional online marketplace for buying and selling websites, apps, and traditional businesses. PIE aims to build the “microacquire” of the region and make it easier for smaller companies to gain more visibility to investors and eventually list on an M&A marketplace and for buyers to be able to search for potential acquisitions online.
- Clara secures investment from The LegalTech Fund: UK-based, MENA-focused startup Clara raised investment from US-based The LegalTech Fund which is focused on startups transforming the world of law. This takes Clara’s seed funding to more than $3.5M as it emerges from beta phase. Clara’s platform provides an integrated set of self-service tools to help founders digitally form, manage and scale startups.
- UK’s Footballco acquires UAE-based Kooora: Football-focused digital media company Footballco acquires online sports content startup Kooora for $25M. This enables Footballco to expand its regional fanbase to 42 million. Both companies are relocating their headquarters to KSA
- YallaMarket accepts cryptocurrencies as payment on its app: The quick-commerce startup launches the new payment method, after partnering with CoinMENA, the digital assets exchange licensed by Central Bank of Bahrain. Stable coins USDT (Tether) and USDC are accepted for orders made via their app. The startup is also considering paying salaries via digital assets in the future
- Careem adds car rental service to its super app: As a result of their partnership, ride-haling app Careem now offers car rental services via Swapp app. Swapp allows customers to browse cars on its app, and rent them on a monthly basis, initially for a minimum of 30 days, after which they can renew, return the car or swap it for a different one.
- Cryptocurrency exchange Rain waives trading fees: Rain, a cryptocurrency exchange that is licensed by the Central Bank of Bahrain, has introduced zero per cent trading fees, with the aim to attract and on-board new customers in the region. This move follows the startup’s Series B funding in early 2022.
- Careem shifts focus to financial services: The move aims to position the super app as a key fintech player in the Middle East and Pakistan. Following regulatory approval and in partnership with First Abu Dhabi Bank, they now offer a wider range of services with its Careem Pay digital wallet, including bill payments and peer-to-peer money transfer using a phone number, QR code, or payment link, all with the ability to cash out
- B2B Marketplace Retailo acquires DXBUY (UAE): Retailo, the Saudi-based one-stop shop marketplace for SMEs and retailers, acquired DXBUY for undisclosed amount. This helps the company develop inroads in DXBUY’s hotel, restaurant & café marketplace, as the former plans expansion to the MENAP region.
- UAE Cabinet announces new rules for long term visas: A set of executive regulations announced now make long-term permits to enter and stay in the country more accessible, as the country aims to attract and retain top talent. This includes a new set of flexible requirements for entrepreneurs and startup owners to potentially qualify for the Golden Visa
VENTURE CAPITAL
- Dubai launches $100M Venture Capital Fund for Startups: Aimed to bolster startup projects in the emirate, the fund is will be deployed in June, to be governed by DIFC, which also contributes 15% to the fund. It will run for 8 years and is expected to provide 8,000 jobs for emerging talents and strengthen Dubai’s position as a regional center for entrepreneurship, FinTech, innovation and venture capital.
- Flat6Labs & Saudi Venture Capital (SVC) launch $40M Startup Seed Fund: Named the “Startup Seed Fund”, the fund aims to support more than 20 Saudi startups annually with seed capital over the next three years, in addition to a number of other benefits, such as support via Flat6Labs Riyadh Seed Program.
- IFC pledges $15 million investment in Algebra Fund II: The International Finance Cooperation’s (IFC) investment Algebra Ventures’ $90M second fund will support the growth of 20 tech startups, primarily women-led and serving rural communities in Egypt and wider Africa
- KSA’s KAUST launches VC fund for deep tech startups: King Abdullah University of Science and Technology (KAUST) Innovation Fund will invest in seed stage startups with large potential market, superior product/tech, and are in alignment with KAUST’s main research areas. Ticket size would range from $200K-$2M.
STARTUP PROGRAMS
- DIFC launches venture studio platform to develop fintech in Dubai: In collaboration with Enhance Ventures and Silicon Foundry, the “Studio Launchpad” will focus on finance and digital asset technologies to build a “Ubiquitous Finance” ecosystem. It is part of DIFC’s 2030 strategy to incubate 10 unicorns, 100 scale-ups and over 8,000 innovation jobs from Dubai, to attract $272M in venture capital.
- Dtec’s SANDBOX for early-stage startups puts Founders at its core: Dtec’s landmark 12-month startup program offers founders 200+ hours of workshops, 100+ hours 1:1 with expert practitioners, USD $950,000+ in-kind credits from partners, access to award-winning office space, Equity Warrant of USD $50,000, business licensing support, and much more. If you are an early-stage tech entrepreneur in Dubai, seeking to test, grow and scale, APPLY TODAY
- Startup Programs Application Deadlines
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